Merriman Market Analyst

Review and Preview

Last week’s translation of the Sun in hard aspect to the recent Jupiter-Uranus square was every bit as dramatic as expected for stocks and commodity markets. In fact, many stock markets suffered their most serious decline of the year since the February 26-March 5 sell-off, before recovering smartly into Friday’s close in the case of the U.S. indices. Interestingly enough, February 26-March 5 was the previous time that the Sun made a similar translation to the first Jupiter-Uranus square. In all, there are three passages of the Jupiter-Uranus waxing square this year, but the third and final one (October 9) will not have a translation from the Sun nearby. Venus however will make a translation to the Jupiter-Uranus square October 24-30, and perhaps that will have a similar effect as we witnessed in early March and June.

In the meantime, it is encouraging (and reassuring to those of us who study Financial Astrology) to see geocosmic signatures once again correlating with sharp reversals in equity markets. I realize it may be unsettling for those who own stocks, and I do not mean to imply that sharply falling stock prices is a “good thing.” But for a moment there – as a Financial Astrologer - I was beginning to wonder if this was Pluto’s way of exacting his revenge for being demoted to a dwarf star status last September? Perhaps he was telling us that no planets would affect human activity ever again without his participation as a fully recognized “planet.” It seemed that almost every geocosmic reversal signature failed to stop this “blow off” in equities since that time, with the exception of February 26-March 5. But Pluto – please – understand that we are astrologers and not astronomers. We didn’t demote you. Well, at least you allowed the other planets to perform very reliably as reversal correlates in all the other markets during this period. And isn’t it interesting how every geocosmic critical reversal date given in the Forecast 2007 Book for Gold and Silver has been dead on since March 1?

It wasn’t only equity markets around the world that took a hit last week as the Sun formed its T-square to Jupiter and Uranus. Precious metals, Treasuries, and currencies (vis-à-vis the Dollar) all took a plunge, whereas Crude Oil rallied quite strongly until Friday, re-testing its highest price since the Iranians took hostage the British sailors back in early April.

Short-Term Geocosmics

As the earthquake-like T-square of the Sun-Jupiter-Uranus ends this weekend, we start to prepare for the next Mercury retrograde period (June 15-July 9), and the third and final passage of the Saturn-Neptune opposition (June 25). This forthcoming Mercury retrograde date of June 15 may be important, for it falls just one trading day prior to the midpoint of the entire geocosmic cluster now underway (June 4-July 1), as discussed last week.

In the case of Mercury retrograde, we can anticipate more failures in technical signals. This is a period when support and resistance zones are oftentimes violated, or fail to be tested at all as other technical signals would have suggested. Our policy is simple: trade very short-term during this period, taking profits quickly. Or take a vacation. This is not usually an easy period for position traders or investors, as economic and political news items seem to be contradictory.

In the case of the midpoint of a geocosmic cluster zone, this is usually the time frame when many markets culminate their primary cycles and begin major reversals. We will keep subscribers alerted via our daily and weekly market reports. In the case of the Saturn-Neptune opposition, this can correlate to a period of “lost faith” in both systems and people that one previously relied upon. For instance, if the stock market continues declining into late June, it could look like a waterfall. It could coincide with a sense of panic, especially given where we are in terms of the greater 4-year stock market cycle. It is late. And at the end of long-term cycles, people tend to lose faith too, once the dominance of the downfall starts to pick up steam. But then again, with the possibility that the Saturn-Neptune opposition instead correlates with the manipulation of stock markets by something referred to as the “Plunge Protection Team (PPT),” we may never see a full-fledged bear market prior to the 2008 elections. The PPT cannot afford to allow stock prices to cave in and thus set off the type of panic and hysteria otherwise suggested by the opposition of Saturn and Neptune.

Long-Term Thoughts

Over the course of the past 4 years, I have frequently referred to the importance of the Uranus-Neptune in mutual reception signature (2003-2011). This phenomenon only happens five times between 1478 and about 2177. This is the fourth occurrence, and the only one since the great European Renaissance of the late 15th, early 16th century that also coincided with the Neptune-Pluto waxing sextile relationship, an 80-year phenomenon that repeats approximately every 500 years. It is the reason I believe we are living in another renaissance – and very few of us even realize this. Why? Because we are inundated with negative and fear-inducing news on a daily basis pertaining to the state of world affairs. This “fear sells” dynamic unfolds as Saturn reaches its opposition to Pluto, then Neptune and Uranus, all in this single decade (2001-2010).

The opposition aspect represents the half-way point – or climax – of the planetary pair cycle. In the case of Saturn to the planets outside of its orbit, it is only the fourth time this has happened in nearly 200 years, for each of these cycles has a periodicity of at least 35 years. To see all three oppositions happen in one decade is very rare indeed. And in every case (1827-1834, 1863-1873, and 1965-1972) the U.S. stock market and economy topped out and was followed by a multi-year recession and bear market. But in terms of collective psychology, the “triple Saturn oppositions” represent a time of fear and uncertainty about the current and future conditions of the world. As Saturn moves from the opposition to the conjunction, matters do seem to get more difficult. The downside phase of each of these cycles lasts 16-23 years. The last of these three planetary pairs will enter the downside of their cycle in 2010 (Saturn-Uranus). The first of these planetary pair cycles to complete this phase and enter their next up phase (Saturn-Pluto, waxing from conjunction to opposition) doesn’t begin until 2020. So, according to these cycles, we are living in a state of increasing fear right now, soon to become more troublesome in terms of economic trends (higher interest rates, higher deficits, higher taxes, and greater employment issues). And because out attention is on these matters, we can’t easily see that the even greater cycles of Uranus, Neptune, and Pluto are in the more uplifting “waxing phase” of relating to one another. This up-cycle pattern will last until the middle of this century.

What does this mean? Well, since it hasn’t happened in 500 years, we are experiencing many benefits of the dynamics associated with Uranus, Neptune, and Pluto. Due to Pluto, we are very aware of the problems that confront us right now. But due to Uranus and Neptune in mutual reception, and Neptune in sextile to Pluto, there is reason to be optimistic, and to believe that humanity will resolve these threats that dominate today’s news. For instance, many people are now extremely concerned about the issues of pollution, climate changes, threats to the ozone layer and wildlife, threats to human lives through terrorism camouflaged by the quest for profits from crude oil. And yet, very quietly (and perhaps with much skepticism), we note that the automobile industry is beginning to make cars that are not so dependent upon fossil fuels. On Tuesday, June 5, for example, General Motors announced two contracts for high tech battery packs to develop the electric powered Chevrolet Volt. As the headlines of the Detroit Free Press blared out: “GM Volt movers closer to reality.” Uranus rules change. It is in Pisces, ruling crude oil. The peak of crude oil demand is probably right now (2003-2008). Once the alternative fuel automobiles start to come out, people will likely buy them much more aggressively than even the optimists believed. Well, that’s how I read the heavens anyway in the next few years, with Uranus and Neptune in mutual reception (innovative solutions to environmental problems) and Saturn in opposition to Uranus (change of primary energy sources, starts in 2008-2010).

Uranus and Neptune is also the quest for world peace, and once again we see protest marches (against war, against anything restrictive) on the rise throughout the world. There were large protests in Europe last week ahead of the G-8 summit, where the theme was climate control. And according to Friday’s Wall Street Journal, Venezuelan President Hugo Chavez is now facing large student protests against his power grip over that country. The increase in active protests is not only a theme of Uranus and Neptune in mutual reception, whose primary goal is world peace and a safer (cleaner) environment. It is also related to Saturn in opposition to Uranus, which is the last of the “triple Saturn” oppositions taking place 2008-2010. You may remember the protests around the world that took place under the last opposition of these two planets in 1965-1967. It was a time of much unrest, change, and excitement. The same themes are returning again, and with them, similar opportunities for long-term investment. Watch the trends of young people.